Money orders work in the opposite of checks – you exchange money (typically cash) for a piece of paper that represents that amount of money. You can purchase a money order at several places besides the bank, such as post offices, convenience stores, grocery stores, and more.
Which is better check or money order?
Cashier’s checks are generally considered more secure than money orders. Although there are check scams involving fake cashier’s checks and money orders, a cashier’s check has more security features than a typical money order.
Are money orders same as checks?
Just like personal and cashier’s checks, money orders are secure forms of payment, representing an amount of money. Unlike checks, a money order does not pull funds directly from your account.
Is a money order safer than a check?
A cashier’s check is safer than a money order because it’s backed by the financial institution that issued it. A cashier’s check is filled out by the bank, so the funds can’t be cashed by anyone other than who it was issued to. Money orders, on the other hand, carry extra risk.
What is the purpose of a money order?
A money order is a certificate, usually issued by a government or banking institution, that allows the stated payee to receive cash on demand. A money order functions much like a check, in that the person who purchased the money order may stop payment.
How long does it take for a money order to clear?
It can take up to 30 days for the issuer to confirm the money order’s loss or theft. Depending on the issuer, you may have to pay a fee. For example, Western Union charges $15 for a refund — $3 for money orders of less than $20 — if you have a receipt or $30 for any refund without a receipt.
What’s the limit on a money order?
A primary difference between money orders and cashier’s checks is the maximum dollar limit. Money orders typically have maximum limits around $700 or $1,000, although actual limits depend on the issuer. Cashier’s checks, on the other hand, are available for much larger amounts.
Can I deposit a money order like a check?
Banks accept U.S. Postal Service money orders as they would regular checks at branches, ATMs or even on a banking app with a mobile check deposit function. Don’t forget to sign the back of the money order before depositing.
How do you cash in a money order?
How to Cash a Money Order
- Bring your money order to a location that will cash it. You can take the money order to your bank, credit union, grocery store, and some retail stores. …
- Endorse your money order. …
- Verify your identity. …
- Pay service fees. …
- Receive your cash.